How to Handle Spam Calls After Applying for a Mortgage: A Detailed Guide

If you’ve recently applied for a mortgage, you’ve probably noticed something unsettling: a surge in unsolicited spam calls. These calls may come from unknown numbers, companies claiming to help you with your mortgage process, or even people offering various financial products. If you’re like me, it’s frustrating and overwhelming, especially at a time when you need clarity and focus on your home-buying journey. In this article, I’ll dive into the reasons behind these calls, the potential risks they pose, and how to deal with them effectively. I’ll also offer practical solutions, and share some examples and insights that I’ve gathered from personal experience and research.

Why Do Spam Calls Increase After Applying for a Mortgage?

Once you’ve submitted your mortgage application, your contact details, particularly your phone number, are now in the hands of many third-party organizations. These can be:

1. Mortgage brokers and lenders who either directly or indirectly sell or share your information.
2. Lead generation companies that purchase lists of individuals who’ve applied for a mortgage, offering to connect you with other lenders or service providers.
3. Scammers trying to capitalize on your vulnerability during a big financial decision like purchasing a home.

When you apply for a mortgage, the information you submit is often stored in databases and shared with marketing firms. These firms then target you with calls or messages, claiming to offer better deals or services. While some are legitimate, many are scams or annoying marketing tactics designed to exploit the newness of your financial situation.

Types of Spam Calls You May Encounter

Spam calls can take various forms, but they typically fall into one of these categories:

1. Robocalls: These are pre-recorded messages delivered by an automated system, often claiming to offer lower mortgage rates or better loan options. They will direct you to a live person to “finalize” the deal.
2. Loan Modification Offers: Some calls offer to “help” you lower your monthly mortgage payment by modifying your loan terms. These can be misleading or outright fraudulent.
3. Debt Relief or Consolidation Offers: After applying for a mortgage, you might receive calls offering to help you consolidate debt or avoid foreclosure. These calls can seem helpful but may involve high fees or result in scams.
4. Refinance Offers: Some callers claim they are offering the best refinancing options, even if you haven’t even purchased the house yet.

Risks of Spam Calls After Applying for a Mortgage

While most spam calls are annoying, some can pose real financial risks. Here are a few potential dangers:

• Fraudulent Offers: Scammers can disguise themselves as legitimate mortgage companies or financial institutions, convincing you to share sensitive information such as Social Security numbers, bank details, or credit card numbers.
• Identity Theft: Giving away too much personal information can lead to identity theft. Scammers might use your details to open new credit accounts or commit other forms of fraud in your name.
• Wasted Time and Energy: Even if the calls aren’t scams, they can still waste your time and distract you from making informed decisions about your mortgage application and home purchase.
• Pressure Tactics: Some callers might try to pressure you into making a quick decision, which could result in choosing a loan or lender that isn’t the best fit for your financial situation.

How to Identify a Spam Call

It’s important to know the warning signs of a spam call, so you don’t waste your time or risk your personal data. Here are some red flags to watch for:

1. Unsolicited Offers: If you didn’t request any information about mortgages or refinancing from the company calling, it’s likely a spam call.
2. Pressure to Act Quickly: Legitimate mortgage brokers and lenders will never pressure you to make a decision quickly. Spam callers may create a sense of urgency.
3. Too Good to Be True Offers: If the caller promises incredibly low rates or unrealistic terms, be wary. Scammers often prey on the excitement of homebuyers by offering deals that seem too good to pass up.
4. No Clear Identification: If the caller doesn’t identify themselves clearly, or if they provide only vague details about their company, it’s best to hang up.
5. Request for Sensitive Information: If the caller asks for personal details like your bank account or Social Security number, you should immediately stop the conversation.

What Can You Do to Protect Yourself?

When you apply for a mortgage, it’s nearly impossible to avoid receiving some form of unsolicited call. However, there are several steps you can take to protect yourself and minimize the impact of these calls:

1. Register for the National Do Not Call Registry: The Federal Trade Commission (FTC) maintains a National Do Not Call Registry where you can add your number to avoid most telemarketing calls. While this won’t stop all spam calls, it will reduce them significantly.
2. Use Call-Blocking Features: Most mobile phones and landlines today have call-blocking features. You can block specific numbers or enable your phone to automatically reject calls from unknown numbers. Some services, like Nomorobo, can also help block robocalls.
3. Screen Calls: If you receive a call from an unfamiliar number, let it go to voicemail. Legitimate companies will leave a message, while scammers won’t. It’s always a good idea to verify the identity of the caller before engaging in any conversation.
4. Be Cautious When Sharing Personal Information: Never share sensitive information like your Social Security number, bank details, or mortgage application details over the phone unless you’re certain of the caller’s identity and legitimacy.
5. Verify Offers Before Acting: If you receive an unsolicited offer to refinance or modify your mortgage, don’t immediately accept it. Instead, research the company online and check reviews or complaints. Call your mortgage provider directly to confirm whether the offer is legitimate.

What to Do if You’ve Been Scammed

If you suspect that you’ve been a victim of a mortgage scam, here are some steps you should take immediately:

1. Contact Your Lender: Let your mortgage lender know about the situation. If the scam involved a company claiming to represent them, they might be able to investigate the matter further.
2. Report the Incident: Report the scam to the Federal Trade Commission (FTC) via their website. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state’s attorney general’s office.
3. Monitor Your Credit: Keep an eye on your credit reports and bank accounts for signs of fraud or identity theft. You can request a free credit report from each of the three major bureaus (Equifax, Experian, and TransUnion) once a year at AnnualCreditReport.com.
4. Place a Fraud Alert or Freeze on Your Credit: If you believe your identity may have been stolen, placing a fraud alert or a credit freeze on your credit files can prevent further unauthorized activity.

How to Deal with Persistent Spam Calls

Unfortunately, some spam callers will persist no matter what actions you take. Here are a few additional strategies to deal with them:

1. Change Your Phone Number: If spam calls become unbearable, consider changing your phone number. This can be a drastic measure, but it might be the best solution if you’re overwhelmed by calls.
2. File a Complaint: Regularly file complaints with the FTC or the Federal Communications Commission (FCC) about the spam calls you receive. While this may not stop them immediately, it can help build a case for future action.

Example Scenarios: How Spam Calls Could Affect You

Let’s consider a few examples of how spam calls after applying for a mortgage can affect your decision-making and the potential costs involved:

• Scenario 1: Loan Modification Scam Sarah recently applied for a mortgage and received multiple calls claiming to help lower her payments. One caller promised a 30% reduction in her mortgage payment if she signed up for their “loan modification service” for a fee of $1,000. Sarah, worried about her budget, almost gave in. After conducting research and verifying with her lender, she realized it was a scam, and she avoided a financial loss.
• Scenario 2: Refinancing Offer John applied for a mortgage and received an offer to refinance his new home loan from a different company. The caller promised him lower rates and monthly payments. John was initially interested, but after reviewing his loan documents and comparing offers, he realized the caller’s terms were far worse than his original mortgage. This allowed him to make a more informed decision.

Conclusion

Spam calls after applying for a mortgage are a common annoyance, but they can also be dangerous. By understanding the reasons behind these calls, how to identify scams, and what steps to take to protect yourself, you can ensure that your home-buying process remains smooth and free from unwanted distractions. Remember, when in doubt, don’t hesitate to verify offers and protect your personal information. Stay vigilant, and you’ll be well-equipped to handle any spam calls that come your way.

I hope this article provides you with the clarity and tools you need to navigate this issue. By being proactive and cautious, you can minimize the risks and keep your mortgage journey on track.